Funding Delays Stall 10th Avenue and Sihala Flyover Projects in Islamabad

Two of Islamabad’s key infrastructure projects—the 10th Avenue corridor and the Sihala flyover—have been severely disrupted following the federal government’s decision to withdraw financial support in the recently unveiled 2025–26 budget. According to official budget papers, these schemes will now proceed under the sole financial responsibility of the Capital Development Authority (CDA).

CDA Left to Tackle Projects Alone

The 10th Avenue project, launched in 2022 under the Public Sector Development Programme (PSDP), was initially slated for completion by March 2024. The Rs. 10.2 billion initiative aims to connect Katarian Bridge on Karnal Sher Khan Road (formerly IJP Road) to Srinagar Highway, running adjacent to Islamabad’s G-9 and G-10 sectors. The corridor spans 5 kilometers and is part of a broader urban mobility strategy to reduce congestion in central areas.

As of mid-2025, only 44% of the project has been completed, with CDA citing irregular federal funding as the main bottleneck. Of the total estimated cost, only Rs. 3.5 billion has been disbursed, leaving the agency scrambling for alternatives to cover the remaining amount.

Sihala Flyover: A Long-Stalled Plan

The Sihala flyover, initiated in 2021 at a cost of Rs. 770 million, has also been affected. Construction halted shortly after contract awards due to a lack of funds. Despite its strategic importance in connecting southern Islamabad to Rawat and surrounding rural areas, the federal government has now tasked CDA with full financial and operational responsibility for completing the overpass.

Implications for Urban Mobility

Both projects were once considered integral to Islamabad’s long-term transportation master plan, intended to alleviate traffic congestion and improve connectivity in underserved zones. With the burden now fully shifted to the CDA, urban planners and residents are questioning whether the authority possesses the financial strength and institutional capacity to deliver.

The development also highlights broader fiscal challenges at the federal level, as infrastructure funding increasingly depends on local agency revenues and self-financing models. Experts warn that continued delays may negatively impact Islamabad’s urban development, with commuters bearing the brunt of prolonged construction timelines.

Disclaimer:
This article is based on publicly available budget documents and official statements from the CDA and related government departments. Project timelines, funding status, and policy decisions are subject to change. For the most current updates, please consult official CDA sources or government publications.

Afsheen Gohar

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